DR Horton Inc (DHI)

Days of inventory on hand (DOH)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Inventory turnover		1.17	1.06	1.21	1.26	1.22
DOH	days	312.76	344.03	302.27	290.55	300.12

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.17
= 312.76

To analyze D.R. Horton Inc.'s days of inventory on hand (DOH) over the past five years, we can observe a trend of inventory management efficiency. DOH represents the average number of days it takes for the company to sell its inventory. A lower value indicates faster inventory turnover, which is generally favorable.

Over the five-year period, D.R. Horton Inc.'s DOH has shown some fluctuation. In 2023, the company's DOH decreased to 312.76 days from 344.03 days in 2022. This indicates a potential improvement in inventory management efficiency. However, in 2021 and 2020, the DOH was 302.27 days and 290.55 days, respectively, showing a relative increase in the time it takes to sell inventory.

Comparing these figures to 2019, where the DOH was 300.12 days, there is a slight upward trend in the time it takes for inventory turnover. The increase in DOH over the years may suggest a potential buildup of inventory, which could tie up company resources and possibly lead to higher carrying costs.

It is crucial for investors and stakeholders to further investigate the factors contributing to these changes and understand the company's inventory management strategies. Additionally, monitoring DOH relative to industry benchmarks and competitors can provide valuable insights into D.R. Horton Inc.'s operational effectiveness and competitiveness in the market.